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Beijing - Chicago soybean futures fell on Monday after hitting a near two-year high last week, as the market grapples with the news of a potential delay of U.S President Donald Trump's meeting with Chinese President Xi Jinping later this month
The most-active soybean contract on the Chicago Board of Trade fell 2.1% to $11.99-1/2 a bushel, as of 0300 GMT on Monday. Wheat lost 1.1% to $6.06-3/4 a bushel, and corn fell 0.5% to $4.65 a bushel. Trump said on Sunday he could delay his summit with China's President Xi Jinping later this month as he presses Beijing to help unblock the Strait of Hormuz.
Trump said his administration is talking to seven countries, on them to help protect ships in the vital waterway that Tehran has mostly blocked to oil tanker traffic.
“It’s only appropriate that people who are the beneficiaries of the Strait will help to make sure that nothing bad happens there,” Trump told the Financial Times.
A potential delay of Trump and Xi's meeting "may have consequences for how many soybeans China will keep buying," said Tobin Gorey, founder of agricultural consultants Cornucopia. U.S. and Chinese economic officials held talks in Paris on Sunday agriculture trade. Sources told Reuters that the talks were "remarkably stable" and that China remained committed to buying 25 million metric tons of American soybeans over the next three years under the October 2025 U.S.-China trade truce.
In South America, tighter phytosanitary checks are hitting Brazilian soybean shipments to China, threatening to squeeze supplies to the world's top importer after authorities in the South American country stepped up inspections at Beijing's request. Brazil is the world's largest producer and seller of soybeans. Offers to sell Brazilian soybeans to China have dried up due to tighter phytosanitary checks and higher freight rates, traders said.
Tighter quality checks during Brazil's peak export season could hit supplies in China, though the market is well-stocked following last year's record purchases.
